Fair Trading to ban dangerous aluminium cladding in NSW

The same aluminium cladding that caused the deadly Grenfell Tower fire in London more than a year ago will be banned in NSW as of next Wednesday.

The ban will prohibit the use of aluminium composite panels with a core of more than 30 per cent polyethylene – a substance that can contribute to rapid fire spread – in any external cladding in residential buildings higher than two storeys, and commercial buildings such as hospitals, shopping centres and offices higher than three storeys.

There are exceptions for products that can pass stringent fire tests, according to NSW Fair Trading.

The aluminium cladding that caused the deadly Grenfell Tower fire in London will be banned in NSW from next Wednesday. Photo: Kevin Kearney

NSW Fair Trading Commissioner Rose Webb said the rapid vertical spread of fires associated with these building products in both the Grenfell Tower in London and the Lacrosse Building in Melbourne were two key reasons for the product ban.

After considering a broad range of sources and expert advice, Ms Webb said she was satisfied of the “safety risk posed by this building product”.

“Cladding is the new asbestos. So assistance must come from government, just as it has for [houses with] Mr Fluffy”Karen Stiles, executive officer of the Owners Corporation Network

She said the product was currently being used in contravention of the National Construction Code (NCC) and the code could not be relied on in isolation to address safety risks associated with the product.

The NSW Cladding Taskforce had identified more than 400 buildings across the state with the dangerous cladding installed where it should not be, potentially increasing fire risks, she said.

As of next week it will be an offence to use the building product and corporations could be fined up to $1.1 million and individuals up to $220,000 for its installation.

NSW Fair Trading said the ban would also apply retrospectively to buildings where the product was installed before the new rules were announced.

The dangerous aluminium cladding was identified as a major defect in April, which means anyone who buys a unit or townhouse with the banned product has the right to get repairs done by the builder responsible for up to six years after the building is completed.

It is unclear who is ultimately liable for buildings constructed before 2012, despite a range of statutory options available to recover costs.

But Karen Stiles, executive officer of the Owners Corporation Network, said the ban would have a huge impact on many people living in apartments, who would now have to foot the bill for changes.

“They’re in a very difficult situation – they’re bearing the costs of somebody else’s cost-cutting, which is unacceptable,” she said.

“Cladding is the new asbestos. So assistance must come from government, just as it has for [houses with] Mr Fluffy.”

Ms Stiles also said the the product ban did not go to the heart of the problem.

“Those products were already banned. We don’t know need another ban, we need enforcement of the existing regulation. There’s been substitution and there’s been inadequate supervision,” Ms Stiles said.

“The current regime of self-certification is letting down the community. It’s very concerning and the government needs to take action to ensure the community is protected from substituted, non-compliant products.”

Meanwhile executive director of the Master Builders Association of NSW Brian Seidler said the whole supply chain should be responsible for the dangerous material.

“The products still get into Australia and find their way onto building sites and builders are being held responsible,” Mr Seidler said.

“We don’t want these non-conforming products making it on the building sites. It takes federal and state governments to stop that,” he said.

Mr Seidler said it was “criminal” if builders were installing aluminium cladding against architects’ and engineers’ specifications or designs.